Consumer groups react to CFPB reorganization

By Nicole D. Prysby, J.D.

The Washington Post reported on February 1 that Mick Mulvaney has reorganized and stripped the enforcement powers from the CFPB division that has been responsible for pursuing discrimination cases. According to the article, the Office of Fair Lending and Equal Opportunity will be moved under the direct control of the office of the director and will focus on advocacy; it will no longer have responsibility for oversight or enforcement. A spokesman for Mulvaney released a statement declaring that the move was made to increase efficiency and consistency.

Citizens groups have protested the change. Americans for Financial Reform released a statement in opposition, arguing that the move threatens effective enforcement and is just another move by Mulvaney to undermine the CFPB. Public Citizen released a statementwith similar sentiments, asserting that the division has been crucial in protecting consumers.

U.S. PIRG, Americans for Financial Reform, and Consumer Action released a joint statement opposing the move and also noting opposition for other restructuring changes Mulvaney has recently taken, including moving the CFPB’s Office of Consumer Response into the Consumer Education and Engagement Division. Consumer response had been an independent office that had a role helping all other CFPB units collect and understand consumer complaint trends. The statement questioned the purpose of the moves, and asks how consumer protections will be improved with the new structure.

Allied Progress also released a broad statement condemning the OFLEO move and other actions of Mulvaney, including as his announcement that CFPB will freeze some CFPB data reporting and collection, and his anti-CFPB votes while in Congress.